Do crypto exchanges need a 1099 tax form?

Beginning in the tax year 2023, US-based crypto exchanges must collect tax reporting information from their customers so that they can send them (and the IRS) 1099 crypto forms. [ 1] 1099 tax forms report income earned from an entity or person other than an employer.

What is Form 1099 & how does it work?

Form 1099 is designed to report taxable income to you, the taxpayer, and to the IRS. Unfortunately, these forms can often be filled with incomplete and inaccurate information and make tax season even more stressful. In this guide, we’ll break down everything you need to know about Form 1099 as it relates to cryptocurrencies and digital assets.

How do I report cryptocurrency income on a 1099-MISC?

Once this form is complete, your net gain or loss should be reported on Schedule D. The cryptocurrency income (staking, etc.) that’s reported on a 1099-MISC should be reported on Schedule 1, Schedule B, or Schedule C of your tax return depending on the specifics of your situation. We know all of this can get confusing.

Does Coinbase issue 1099-B for crypto trading?

The short answer is no, Coinbase does not at time of writing issue form 1099-B for crypto trading. Currently, Coinbase issues 1099-MISC if you meet the following criteria: This may be subject to change very soon.